What if There are not Enough Assets in the Estate to Pay All of the Decedent’s Debts?
20 September 2017
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There will not be any inheritance to the heirs or beneficiaries, who receive assets only if all debts are paid. New York law has a statutory priority of claims, in which some claims (such as funeral expenses) come ahead of others. New York law allows the creditors to reach assets of the decedent which were placed in certain types of trusts (e.g., a “living trust”), and requires those trustees to use trust assets if necessary for estate expenses and claims.
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